Tax Break

Essential reading: FATCA hurts Americans abroad, and more

April 30, 2013

Welcome to the top tax and accounting headlines from Reuters and other sources.

 * Americans living abroad say U.S. tax laws punishing them. Margaret Collins and Richard Rubin – Bloomberg news. Complexity has increased for Americans abroad with the Foreign Account Tax Compliance Act, enacted in 2010 to combat tax evasion by US taxpayers with assets offshore. Link    

* It takes 2 votes, but Minnesota Senate approves $1.8 billion tax bill. Baird Helgeson and Jennifer Brooks – The Star Tribune. The Minnesota Senate approved $1.8 billion in tax increases on a second try Monday, but only after salvaging the measure amid an embarrassing political defeat for Democratic leaders. Link    

* France’s Hollande plans tax changes to woo investment. William Horobin and Sam Schechner – The Wall Street Journal. French President François Hollande called a broad sweep of business leaders at the Elysee Palace Monday to offer them a break on the capital gains tax and pitch new proposals for encouraging entrepreneurship in a country desperate for growth. Link    

* Great tax race: Luxembourg set to share companies’ bank details. James Fontanella-Khan – The Financial Times. Luxembourg is ready to share currently confidential information about multinationals’ bank accounts as part of efforts to shed the Grand Duchy’s image as a leading tax haven. Link 

* Debt and Growth. The Wall Street Journal editorial. Perhaps you’ve read that America’s debt burden is no longer a problem. The crucial issue isn’t merely the level of debt, the important matter is what that additional debt is buying. Link    

* The coming ObamaCare shock. Daniel Kessler – The Wall Street Journal. Anecdotal evidence already suggests that the disincentives will really matter in the job market, as full-time jobs are converted to part time. Why would employers do this? Because they aren’t subject to a tax penalty for employees who work less than 30 hours per week. Link

 * A small victory against anti-tax conservatives. Jamelle Bouise – The Washington Post opinion. The Heritage Foundation and Gover Norquist want a Republican Party governed by ideology alone, where no tax is acceptable, no matter what. Link 

* Wealth inequality and political inequality. Bruce Bartlett – The New York Times opinion. A crucial question in the debate over income and wealth inequality is whether its growth necessarily leads to a growth in the inequality of political power. Link

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